The rule in plain words
None of the values it checks in information on performing and non-performing exposures (II) can be negative.
EBA checks it for nine columns, from accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions (0130) to purchased or originated credit-impaired financial assets (0952). And for 22 rows, from loan commitments given (0340) to off-balance sheet exposures (0550). That makes 198 checks. A failure names the one that failed.
How the Line4 Check report words itShowHide
The first of its checks, word for word as the report shows it when it fails. The others read the same, with their own column, row or sheet.
Of which: Credit-impaired instruments (Stage 3): OFF-BALANCE SHEET EXPOSURES >= 0
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Look for a value with the wrong sign in these cells, such as an amount entered as a negative number.
- 03EBA compares the values exactly here: there is no rounding tolerance.
- 04It runs only when your filing indicators mark F 18.00 as reported.
- 05This is a warning. It does not stop the filing on its own, but your authority may ask you to explain it.
The cells it reads
Information on performing and non-performing exposures (II) (F 18.00.b)
Rows
- 0340Loan commitments given
- 0350Central banks
- 0360General governments
- 0370Credit institutions
- 0380Other financial corporations
- 0390Non-financial corporations
- 0400Households
- 0410Financial guarantees given
- 0420Central banks
- 0430General governments
- 0440Credit institutions
- 0450Other financial corporations
- 0460Non-financial corporations
- 0470Households
- 0480Other Commitments given
- 0490Central banks
- 0500General governments
- 0510Credit institutions
- 0520Other financial corporations
- 0530Non-financial corporations
- 0540Households
- 0550OFF-BALANCE SHEET EXPOSURES
Columns
- 0130Accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions
- 0140Performing exposures - Accumulated impairment and provisions
- 0141Of which: Instruments without significant increase in credit risk since initial recognition (Stage 1)
- 0142Of which: Instruments with significant increase in credit risk since initial recognition but not credit-impaired (Stage 2)
- 0143Of which: purchased or originated credit-impaired financial assets
- 0150Non-performing exposures - Accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions
- 0950Of which: Instruments with significant increase in credit risk since initial recognition but not credit-impaired (Stage 2)
- 0951Of which: Credit-impaired instruments (Stage 3)
- 0952Of which: purchased or originated credit-impaired financial assets
A worked example
The first of its checks, with simple numbers.
Off-balance sheet exposures, credit-impaired instruments (Stage 3) must then be at least 0.
A file that reports 0 passes. One that reports -100 fails, by 100.
The numbers are illustrative.
Show the rule as writtenShowHide
EBA's formula, as written out for the first of its checks. Cells are written as {template, row, column, sheet}.
{F_18.00.b,r0550,c0951,} >= 0The next five:
{F_18.00.b,r0350,c0142,} >= 0{F_18.00.b,r0390,c0150,} >= 0{F_18.00.b,r0340,c0140,} >= 0{F_18.00.b,r0340,c0142,} >= 0{F_18.00.b,r0420,c0141,} >= 0And 192 more, the same formula for the other cells it covers.
Other rules on F 18.00.b
- Each of the 312 values it checks in information on performing and non-performing exposures (II) cannot be more than zero (v23161_s)Warning
- The absolute value of non-financial corporations cannot be less than the absolute value of small and medium-sized Enterprises (row 0196, v23558_h)Warning
- The absolute value of non-financial corporations cannot be less than the absolute value of small and medium-sized Enterprises (row 0226, v23559_h)Warning
- Debt instruments at strict LOCOM, or fair value through profit or loss or through equity not subject to impairment must equal the sum of its two parts (v23864_h)Warning
- Debt instruments at cost or at amortised cost: performing exposures, accumulated impairment and provisions must equal the sum of its three parts (row 0005, v12090_m)Warning
- Performing exposures, accumulated impairment and provisions must equal the sum of its three parts (row 0335, v12053_m)Warning
- Performing exposures, accumulated impairment and provisions must equal the sum of its three parts (row 0201, v12052_m)Warning
- Households: performing exposures, accumulated impairment and provisions must equal the sum of its three parts (row 0913, v12051_m)Warning
Every FINREP 9 rule, by template
Checks like this one, run at the point of submission, are the first step to real-time supervision.